Q&A: Hot Financial Planner Sees Mutual Opportunity In Alliances with

In financial planning circles, Harold Evensky has clout.

He's considered a leader in his field-widely quoted in the financial press and a featured speaker at industry conventions. He wrote "Wealth Management" (Irwin/McGraw Hill). And in October, Worth magazine listed him as one of the best 200 financial advisors.

Recently his Coral Gables, Fla., firm raised to $1 million the minimum a new customer must offer for management. In 12 years Evensky, Brown & Katz has grown to $200 million under management, with 250 clients in qualified plans, trusts, and other fiduciary accounts.

Now, having been chosen chairman-elect of the board of governors of the Certified Financial Planner Board of Standards, his stature will likely grow. The board has 30,000 licensees.

Yet Mr. Evensky-who is quick to tell a caller, "please, call me Harold"- has some down-to-earth advice for banks. In a recent telephone interview, he laid out a basic strategy for getting more financial planning business.

What are some of the challenges facing certified financial planners?

EVENSKY: Anybody with a piece of cardboard and some crayons can call themselves a planner. But what we've been working on is letting the public know that "certified financial planner"-CFP-means training in the four E's: ethics, education, experience, and exams.

CFP is a professional designation, whereas an MBA is an educational designation. An MBA is yours; the certified financial planner holds a license-it's a mark, it's registered. It's something I as a practitioner hold from the CFP Board of Standards. The standards are rigorously upheld.

Are more CFPs working in banks?

EVENSKY: Absolutely. One of the biggest demands is coming from banks, which are looking for more client relationships, versus transaction relationships.

American Banker's 1996 consumer survey showed that while 31% of bank customers said they would use financial planning services if offered, only 11% actually had that kind of banking relationship. How can banks bridge the gap?

EVENSKY: It takes an understanding and commitment at the senior level of the bank. The problem is, many bankers are seeing it at the product- delivery level. It's not like giving Teddy bears away. Often the ones left to carry it out are the branch managers, and branch managers generally have more than enough on their hands.

Also, the financial planning client has demands. It could be that a financial planner determines that a client should talk to the mortgage department, but the mortgage department says they've never heard of (the client).

What can bankers do to change that?

EVENSKY: There needs to be a shifting from the sales side to sit on the side of the table with the client.

Any other ways?

EVENSKY: Our firm is working with a major Florida bank; we've just signed an agreement. It's a serious commitment. We'll work on a contract basis and share income. The service will be provided on a fee basis. There's lots of opportunity there. That way you (bankers) have planners with established relationships. It's probably the most practical way to get in, to do it quickly. To find an experienced planner takes a lot of time.

As banks branch into insurance, securities, and other financial services, will CFPs have more opportunities?

EVENSKY: Absolutely. That's one of the issues: Where do new planners go for jobs? Banks are a phenomenal opportunity. A lot of (planners) would prefer a bank to a brokerage. They may not have a sales background, or they're attracted to planning for consultative, client relationships.

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